Rishabh Gadkar

MBA MM sec. ‘A’

Consumer Behaviour
Assignment
Automobile industry
The automotive industry in India is the fourth- largest in the
world, due to increase in disposable income in both rural and
urban sector and availability of easy finance are the main
drivers of high volume car segments. Further competition is
heating up with host of new players coming in and global
brands like Porsche, Bentley, and Ferrari all set to venture in
Indian market. Indian Automobile car business is influenced by
the presence of many national and multinational manufacturers.
Indian buyer has different priority of behaviors in each segment,
where as main driver for car purchase is disposable income.
Value for money, safety and driving comforts top the rank in
terms of customer requirement; where as perceived quality by
customers mainly depends on brand image.
There are various reasons for the growth of the Indian
automobile market such as -
1. The people have more disposable income as economy is
growing.
2. Increase in the need of mobility due to urbanization and
leisure travel.
3. Car Finance options available from Financial Institutes at
reasonable rate of interest.
4. Availability of service centers and spare parts in near vicinity.
5. Improvement in highway infrastructure.

Question 1:- Will the preference of consumers for products

and services change in future?
Answer:- Yes, we expect preference of consumers for
products and services will change in future. Because of the
Corona Virus during lockdown we have seen positive effects on
the environment because no vehicles were driven there was no
pollution was there so people may shift rapidly towards electric
vehicles. And many automobile manufacturers have introduced
electric versions of there SUV's, hatchbacks, sedans, sports
cars, trucks and buses in electric and hybrid versions are
introduced. And and people will also move towards contactless
services related to automobile industry. For example :- online
buying a car. And also From recent trends in India we have
seen people are referring cars with larger sunroof and also
convertible cars.

Question 2:- What kind of change will be observed in the

consumption pattern and behavior of consumers in future?
Answer:- Because of the Covid-19 pandemic there will be
significant changes in buying behavior after
the lockdown. Consumer preference will be more towards
individual health, hygiene and cleanliness during travel. Post
the pandemic, we expect consumers to switch more towards
personal mobility. Shared mobility will take a backseat in the
medium term. But with subdued sentiments and an aversion to
higher discretionary spends like buying new vehicles, there is
expected to be increased demand for used vehicles in the next
3 – 6 months. Service based models such as pay-as-you-go,
and lease rentals may also see uptake from Indian consumers.
Recently, many OEMs launched online sales channels to
digitally connect with consumers indicating new ways of doing
business.
Question 3:- What will influence consumers Behavior to
choose between various options?
Answer:- The needs of car buyers in India will vary according
to the segment they are looking at. The needs of a prospective
entry-level hatchback buyer will be very different from that of a
luxury car buyer. Similarly, the priorities of a first-time buyer
and someone who is considering upgrading to a bigger car will
be different as well. Following factors influence consumer
behavior to choose between various options:-

1. Brand :- The brand of the vehicle is equally important. In

our competitive market, very few automobile brands have
managed to taste success. Understandably, every brand
is perceived differently by buyers. Before choosing a
brand, one evaluates the brand in terms of its market
reputation, reliability, build quality, technological
innovations, ownership issues and so on.
2. Price :- The first priority for all prospective car buy ers in
our country is deciding the budget. Buying a car is a
financial commitment which requires weeks and at times
months of planning. Buyers take into account the various
benefits being offered by the showroom like cash
discount, exchange bonus, free extended warranty, lower
insurance premium and so on.
3. Styling:- Styling is subjective and what appeals to one be
might be repulsive for another. Fact is nowadays cars are
used to flaunt success, make a style statement and are
considered to be an extension of our personality.
4. Fuel economy and Performance:- One common bit that
strings all Indian car buyers together is their obsession for
 good fuel economy, even India's largest car manufacturer
advertises themselves as makers of most fuel-efficient
vehicles. Our obsession with mileage may not change, but
over the years buyers are beginning to prefer a blend of
performance as well as efficiency. Cars like the Swift
petrol and diesel, Vento/Rapid diesel and Duster 110PS
have shown that is possible to deliver on both counts.
5. Space:- The buying decision is governed by how much
room or interior space the car offers. If the boot is
spacious and can accommodate large bags and
suitcases, then it is an added advantage.
6. Comfort and safety features:- A longer list of features
not only enhances the value for money appeal of the car.
Buyers prefer features like a touchscreen infotainment
system with good quality speakers and tweeters, steering-
mounted audio controls, electrically adjustable wing
mirrors and reverse camera. These features make one's
life behind the wheel a lot easier. Increasingly, car buyers
in India are also taking into consideration the standard
safety features before making a decision
7. Ground clearance:- Buyers prefer to go for a crossover
or compact SUV over premium hatchbacks and sedans
primarily because their high ground clearance makes it
easy to tackle our roads without worrying about breaking
something.
8. Aftersales and service costs:- Buying a car is only the
first step. The actual ownership process begins when you
start using it. That's when the wear and tear starts
happening and eventually some parts will need to be
replaced. Just because you can afford to buy a particular
make and model doesn't necessarily mean that you can
afford to run it. A widespread dealer network is also a
 crucial deciding factor as that means the car can be easily
serviced. Even the availability of spare parts is looked into.

9. Dealership experience:- It is becoming common to hear

people reject a particular brand or dealership because
they didn't like how they were treated. Buyers are even
comparing their dealership experience at different brands
before making a decision.
10. Resale value:- A car is a depreciating asset and one
cannot get away from that fact. However, there is still
some money to be saved if one chooses wisely. So if your
existing car hasn't depreciated much, you can give it to the
dealership as a down payment for a new car.
11. Family requirements:- Very rarely does it happen
that we end up buying a car for ourselves. Mostly we end
up buying what the wife or kids or extended family
members, or all of them wanted. So their requirements
need gets factored into the decision making process.